Flexible Spending Accounts

A Flexible Spending Account (FSA) allows you to set aside a certain amount of your paycheck into an account – before paying income taxes. During the year you have access to this account for reimbursement of expenses you regularly paid for, such as healthcare and dependent daycare. Participation is voluntary and you may enroll only during open enrollment or when you are first hired. Changes can only be made if you experience a change in employment or family status.

Health Care Flexible Spending Account – A health care FSA can reimburse you or help you pay for eligible health care expensesnot covered by your health plan. You set aside money, tax-free, through regular payroll deductions. During the year, you can be reimbursed directly from your account for those qualified healthcare services provided they are not covered by insurance. The maximum amount you may elect for 2015 is $2,500.

Dependent Care Flexible Spending Account – A dependent care FSA is a great way to pay dependent care expenses and lower your taxable income. This account reimburses you for daycare expenses for eligible children and adults. The maximum amount you may elect for 2015 is $5,000.

Any unused funds will be forfeited per Internal Revenue Service (IRS) guidelines. The IRS requires that these unused dollars be forfeited as a condition of offering spending accounts.